Sundaram Finance Prepares for Expansion: Approves ₹130 Billion Fund-Raising Plan

Sundaram Finance Limited, a top non-banking financial company in India, has unveiled a grand fund-raising plan for the financial year 2025-26. The board of directors of the company has sanctioned a proposal to raise a maximum of ₹130 billion by issuing non-convertible debentures (NCDs) on a private placement basis.

This major step follows as Sundaram Finance looks to leverage the increasing need for financial products in India. The firm, with its robust network in vehicle finance, is likely to employ these funds to increase its loan book and look at new avenues for growth.

The move to raise funds via NCDs is in line with Sundaram Finance's model of having a diversified funding base. NCDs and subordinated debt, as of June 2023, constituted 35% of the company's borrowings and form a stable source of funding.

This fundraising effort comes on the back of Sundaram Finance's robust performance over the past few quarters. During Q3 FY25, the company registered a 16% rise in profit after tax to ₹349 crore, and its assets under management increased to ₹50,199 crore.

Sources: Sundaram Finance Limited Regulatory Filing, March 27, 2025